HLeB research:-

KNM’s (BUY, PT RM1.00) 1Q09 net profit of RM98m (+82% yoy, +19% qoq) was in-line
with HLG and consensus estimate. We maintain our BUY rating on the stock: (1) We
maintain our FY09-11 EPS forecast. Order flows should improve in 2H09 due to lower
volatility in crude oil prices. (2) Despite strong share price performance (+99% YTD),
valuations remain compelling at 9.7x FY10 PE, 35-40% discount to global peers. We think
the huge valuation gap to peers is unjustified given similar geographical footprint and
position in the high-end process equipments segment.